Donald Trump announces ‘massive' trade deal with Japan
The agreement, with one of the US's largest trading partners, would lower tariffs for Japan and is the most significant of a string of trade deals the White House has negotiated before Mr Trump's tariffs are due to kick on August 1.
Under the plan, the US president said Japan will pay a 15 per cent tariff on goods imported to the US – down from 25 per cent – and open its markets to American goods, including cars and rice.
'This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan,' Mr Trump said on his Truth Social platform.
The deal also lowers the tariff to 15 per cent from 25 per cent on Japanese cars, which account for more than a quarter of all the country's exports to the US.
The announcement ignited a rally in Japanese stocks, with the benchmark Nikkei climbing 2.6 per cent to its highest in a year.
Shares of carmarkers surged in particular, with Toyota up more than 11 per cent, and Honda and Nissan both up more than 8 per cent.
'Mission complete'
However, US automakers signalled discontent with the deal, raising concerns about a trade regime that could cut tariffs on auto imports from Japan while leaving tariffs on imports from Canada and Mexico at 25 per cent.
The White House did not immediately respond to a request for additional details about the deal.
Ryosei Akazawa, Japan's chief trade negotiator, posted on Facebook that he had visited the White House, saying '#Mission Complete'.
'I just signed the largest trade deal in history, I think maybe the largest deal in history with Japan,' Mr Trump said at a White House event on Tuesday evening.
'They had their top people here, and we worked on it long and hard. And it's a great deal for everybody. I always say it has to be great for everybody. It's a great deal,' he added.
Speaking early on Wednesday in Tokyo, Japanese Prime Minister Shigeru Ishiba said he had received an initial report from his trade negotiator in Washington but declined to comment on the specifics of the negotiation.
Mr Ishiba is under intense political pressure in Japan, amid rising inflation and economic strife. His ruling coalition was set back by losing control of the upper house in an election on Sunday.
Mr Ishiba said he could not say how a trade deal would affect his decision on whether to step down from office until he saw the details.
Two-way trade between Japan and the US reached nearly $230 billion in 2024, with Japan running a trade surplus of nearly $70 billion.
Japan is the fifth-largest US trading partner in goods, and the largest investor in the US.
The Trump administration is working to close trade deals ahead of an August 1 tariff deadline that Mr Trump has repeatedly pushed back under pressure from markets and intense lobbying by industry.
By that date, countries are set to face steep new tariffs beyond those Mr Trump has already imposed since taking office in January.
The US president has announced framework agreements with Britain, Vietnam, Indonesia and paused a tit-for-tat tariff battle with China, though details are still to be finalised with all of those countries.
At the White House, Trump said negotiators from the European Union would be in Washington on Wednesday.
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